First off let me say that I like coming up with new / weird uses for indicators that people may not have thought of before. Just a hobby of mine, so if you see me posting out of the box things, this is why.

The logic behind this is fairly simple. I know many of us have messed around with stochastics previously and looked for overbought and oversold areas to try and catch reversals. However how many times have you seen price keep going through and wondered when a great area would be to enter? This particular strategy tries to capture a specific 30 minute reversal after we have seen 2 sets of failure candles for confirmation. I hope that helps explain it a little more.

First off let me say that I like coming up with new / weird uses for indicators that people may not have thought of before. Just a hobby of mine, so if you see me posting out of the box things, this is why.

The logic behind this is fairly simple. I know many of us have messed around with stochastics previously and looked for overbought and oversold areas to try and catch reversals. However how many times have you seen price keep going through and wondered when a great area would be to enter? This particular strategy tries to capture a specific 30 minute reversal after we have seen 2 sets of failure candles for confirmation. I hope that helps explain it a little more.

Bang on! Early in my spot trading career I used stochastics a lot, especially on 5 min occilations looking for scalps. The one thing I had to overcome was the urge to jump on a trade too early instead of waiting for the stoch. to actually break under the 20 or 80 line. Many times I thought I was in oversold or overbought zones, only to see price continue in the short term trend and the result I would be stopped out for 20 pips or so...So I totally get the logic of waiting for another couple of attempts to continue in the short term direction before considering a short or long...

I am very confident in my swing settings but I am not a good bin trader...so will certainly give this some screen time....good post..

Bang on! Early in my spot trading career I used stochastics a lot, especially on 5 min occilations looking for scalps. The one thing I had to overcome was the urge to jump on a trade too early instead of waiting for the stoch. to actually break under the 20 or 80 line. Many times I thought I was in oversold or overbought zones, only to see price continue in the short term trend and the result I would be stopped out for 20 pips or so...So I totally get the logic of waiting for another couple of attempts to continue in the short term direction before considering a short or long...

I am very confident in my swing settings but I am not a good bin trader...so will certainly give this some screen time....good post..

First off let me say that I like coming up with new / weird uses for indicators that people may not have thought of before. Just a hobby of mine, so if you see me posting out of the box things, this is why.

The logic behind this is fairly simple. I know many of us have messed around with stochastics previously and looked for overbought and oversold areas to try and catch reversals. However how many times have you seen price keep going through and wondered when a great area would be to enter? This particular strategy tries to capture a specific 30 minute reversal after we have seen 2 sets of failure candles for confirmation. I hope that helps explain it a little more.

I never thought of this. I too love out of the box thinking, this is brilliant, D! Thanks.

This strategy came out about 40 + years ago by a guru , NOT a trader , ( by his own admission ) named Jake Bernstein .

He called it the Stochastic Pop , a misnomer, since it is the price that CONTINUES to pop up past 70 or 80 ; or below 20 or 30, not the Stoch. itself .

A college Professor named David Steckel further refined it in an article in " Technical Analysis of Stocks and Commodities " in 2000 . He suggested using a rising ADX to confirm the strength of the seemingly continuing price move "pops " into so-called over/underbought territory .

Bernstein devised the Pop for Day Trading , in one of his many books , but Steckel suggested a Daily time frame . Tweaking all this for Bins , however , is another challenge ; and finding an honest broker even more challenging .

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